1. Introduction

HEB wishes to announce that on 31 May 2023, HSS Engineering Sdn Bhd (“HSSE”), a wholly-owned subsidiary of HEB has accepted and executed a Sub-Consulting Agreement with Oriental Consultants Global Co. Ltd (“Consultant”) for the provision of project management consultancy services (“Services”) in respect of the LRT Jakarta Phase 1B: Velodrome – Manggarai Project in Indonesia (“Project”).

The Consultant has been appointed by PT Jakarta Propertindo (Perseroda) as the Project Management Consultant in respect of the said Project.

2. Information on the Services

Pursuant to the exclusive teaming arrangement between HSSE and HSS Integrated Sdn Bhd (“HSSI”), an associate company of HEB, HSSI and HSSE will be collaborating exclusively to execute and complete the Services. 

3. Financial Effects

The Services are expected to contribute positively to the revenue, earnings and net assets of HEB Group for financial years ending 31 December 2023 to 31 December 2025.

The Services will not have any impact on the share capital and/or shareholding structure of HEB.

The Services are expected to be funded via internally generated funds and/or external borrowings.

4. Risk Factors

The risk factors affecting the Services include, but not limited to execution risks, such as dependency on the schedule of implementation and progress of the Project. Nonetheless, HEB Group has, throughout the years, established its track record and expertise in undertaking such projects. As such, the Board of Directors believes that HEB Group is able to mitigate the aforesaid risk factors.

5. Approval Required

The Services, being part of the ordinary course of business of HEB Group, is not subject to the approval of shareholders of HEB or any relevant authorities.

6. Directors’ and/or major shareholders’ interests

None of the Directors and/ or Major Shareholders of HEB and persons connected to them has any interest, direct or indirect, in the Services.

7. Directors’ Statement

The Board of Directors, after considering all the relevant factors, is of the opinion that the acceptance of the Services is in the best interest of HEB Group and is a significant stepping stone for HEB group and it is in line with the Group’s overall growth strategy, embarking into the Indonesian region.

This announcement is dated 31 May 2023.